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Here's Why United Natural Foods (UNFI) is a Strong Momentum Stock
ZACKS· 2025-07-11 14:50
Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum characteristics [2][10] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score assesses a company's financial health and future outlook through earnings and sales projections [4] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive evaluation of stocks based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for the best chances of high returns [10] Company Spotlight: United Natural Foods (UNFI) - United Natural Foods, Inc. is a leading distributor of natural and organic products in the U.S. and Canada, offering around 250,000 products across various categories [12] - UNFI holds a Zacks Rank of 3 (Hold) with a VGM Score of A and a Momentum Style Score of B, having seen a 10.8% increase in shares over the past four weeks [13] - The company's earnings estimate for fiscal 2025 has been revised upwards, with the Zacks Consensus Estimate increasing by $0.01 to $0.83 per share, and an average earnings surprise of +429.5% [13][14]
FMX Boosts Share Repurchase Plan, Progresses Well on Forward Strategy
ZACKS· 2025-05-20 18:56
Core Strategy - FEMSA is focused on its Forward Strategy, emphasizing long-term value creation of its core businesses and maximizing shareholder value through prudent financial management [1] Share Repurchase Agreement - The company has entered into an accelerated share repurchase (ASR) agreement to buy back $250 million of its American Depositary Shares (ADS) [2] - The ASR agreement will initially deliver 483,559 ADSs on May 20, 2025, with the total number of repurchased shares based on the daily volume-weighted average price during the agreement term [3] Capital Return Strategy - FEMSA plans to return capital to shareholders as a crucial aspect of its overall strategy, following successful divestments related to FEMSA Forward and considering expected capital needs [4] Market Performance - FEMSA's shares have gained 1.8% over the past year, contrasting with a 1.2% decline in the industry, despite facing a soft consumer environment and rising operating expenses [5] Business Segments and Growth Opportunities - The company is progressing on its FEMSA Forward Strategy to drive value in its core businesses, including Retail, Coca-Cola FEMSA, and Digital@FEMSA, while exploring potential divestments [6] - FEMSA's Proximity and Health retail businesses present significant long-term growth opportunities, with plans to accelerate earnings growth through organic expansion [7]
ADM Q1 Earnings Beat Estimates, Lower Revenues Across Segments Hurt
ZACKS· 2025-05-06 18:25
Core Insights - Archer Daniels Midland Company (ADM) reported mixed first-quarter 2025 results, with adjusted earnings per share of 70 cents surpassing the Zacks Consensus Estimate of 69 cents, but revenues fell short of expectations [1][2][3] Financial Performance - Adjusted earnings decreased from $1.46 per share in the year-ago quarter to 70 cents, while reported earnings fell from $1.42 to 61 cents [2][3] - Revenues declined 7.3% year over year to $20.2 billion, missing the consensus estimate of $20.7 billion, impacted by lower revenues across all segments [3][4] - Gross profit decreased 29.4% year over year to $1.2 billion, with gross margin falling 190 basis points to 5.9% [5] Segment Performance - Ag Services & Oilseeds revenues fell 9% year over year to $15.7 billion, while Carbohydrate Solutions revenues decreased 6.2% to $2.6 billion, and Nutrition revenues dipped 1% to $1.8 billion [4] - Adjusted operating profit for Ag Services & Oilseeds plunged 52% year over year to $412 million, affected by lower volumes and margins due to tariff and trade policy uncertainty [6] - Crushing subsegment's operating profit dropped 85% year over year, influenced by lower margins and increased manufacturing costs [7] - Carbohydrate Solutions segment's operating profit dipped 3% to $240 million, with mixed performance across subsegments [9] - Nutrition segment reported an adjusted operating profit of $95 million, up 13% year over year, driven by improvements in Flavors and Animal Nutrition [10] Other Financials - As of March 31, 2025, ADM had cash and cash equivalents of $864 million, long-term debt of $8.3 billion, and shareholders' equity of $22.1 billion [12] - The company used $342 million in cash for operating activities and paid dividends of $247 million in the reported quarter [12] Future Outlook - For 2025, management anticipates adjusted earnings per share to be in the range of $4 to $4.75, with expectations leaning towards the lower end [13]
Service Corp Q1 Earnings Beat Estimates, Funeral Revenues Rise
ZACKS· 2025-05-01 17:25
Service Corporation International (SCI) posted first-quarter 2025 results, with the top line increasing year over year and beating the Zacks Consensus Estimate. Also, the bottom line increased year over year and surpassed the consensus mark. In the funeral segment, Service Corp reported strong performance, with growth in the number of services conducted and the average revenues per service from the prior year.Closer Look at SCI’s Q1 ResultsSCI posted adjusted earnings of 96 cents per share, which surpassed ...
Here's How Colgate is Poised Post Q1 Earnings: Buy or Hold the Stock?
ZACKS· 2025-04-30 17:10
Core Insights - Colgate-Palmolive Company's shares have increased by 7.1% over the past three months, outperforming the Zacks Consumer Products - Staples industry's growth of 1% and the broader Consumer Staples sector's increase of 6.6% [1] - The company maintains a strong position in the consumer products market, holding a 40.9% global market share in toothpaste and a 31.9% share in manual toothbrushes year to date [2] Financial Performance - In the first quarter of 2025, Colgate reported earnings that exceeded the Zacks Consensus Estimate, with year-over-year earnings improvement despite a decline in sales [3] - Organic sales grew by 1.4% in the first quarter, driven by a 1.5% increase in pricing, supported by aggressive pricing strategies [6] - Management projects net sales to grow in low single digits, with organic sales expected to increase by 2-4% year over year in 2025 [13] Strategic Initiatives - The company is focused on innovation and premiumization of its product offerings, including the re-launch of Colgate Total and the Hill's Science Diet with ActivBiome technology [8] - Colgate has invested approximately $2 billion in its supply chain in the United States over the last five years to enhance its operational capabilities [9] - Management is confident in its strategic initiatives to address challenges such as tariffs and inflation, aiming for consistent earnings per share growth [12] Market Challenges - The company faces macroeconomic challenges, including inflationary pressures and tariff concerns, which may impact performance [10] - Sales for 2025 are expected to be negatively affected by unfavorable currency exchange rates [11]